TD Securities Has Lowered Expectations for Open Text (NASDAQ:OTEX) Stock Price

Open Text (NASDAQ:OTEX - Free Report) TSE: OTC had its target price trimmed by TD Securities from $40.00 to $38.00 in a research note issued to investors on Tuesday,BayStreet.CA reports. The firm currently has a buy rating on the software maker's stock.

A number of other brokerages also recently weighed in on OTEX. StockNews.com upgraded shares of Open Text from a "buy" rating to a "strong-buy" rating in a research report on Tuesday, December 17th. Citigroup cut their price objective on Open Text from $34.00 to $33.00 and set a "neutral" rating for the company in a research report on Friday, November 1st. Scotiabank decreased their target price on Open Text from $40.00 to $35.00 and set a "sector perform" rating on the stock in a research report on Friday, November 1st. Barclays reduced their price objective on shares of Open Text from $36.00 to $34.00 and set an "equal weight" rating for the company in a research report on Friday, November 1st. Finally, UBS Group assumed coverage on shares of Open Text in a research report on Tuesday, December 17th. They set a "neutral" rating and a $32.00 price target for the company. Nine investment analysts have rated the stock with a hold rating, three have assigned a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $35.55.

Open Text Stock Performance

NASDAQ OTEX traded up $0.05 on Tuesday, hitting $28.01. 232,259 shares of the company's stock traded hands, compared to its average volume of 651,370. The firm's 50-day moving average price is $30.52 and its two-hundred day moving average price is $31.01. The firm has a market capitalization of $7.45 billion, a PE ratio of 16.19 and a beta of 1.11. The company has a current ratio of 0.79, a quick ratio of 0.79 and a debt-to-equity ratio of 1.54. Open Text has a 1-year low of $27.05 and a 1-year high of $45.47.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last released its quarterly earnings data on Thursday, October 31st. The software maker reported $0.93 earnings per share for the quarter, beating analysts' consensus estimates of $0.80 by $0.13. Open Text had a return on equity of 24.34% and a net margin of 8.35%. The business had revenue of $1.27 billion during the quarter, compared to analyst estimates of $1.28 billion. During the same quarter last year, the business posted $0.90 EPS. The company's revenue was down 11.0% on a year-over-year basis. As a group, analysts expect that Open Text will post 3.37 EPS for the current year.

Open Text Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, December 20th. Stockholders of record on Friday, November 29th were issued a dividend of $0.262 per share. The ex-dividend date of this dividend was Friday, November 29th. This represents a $1.05 dividend on an annualized basis and a dividend yield of 3.74%. This is an increase from Open Text's previous quarterly dividend of $0.19. Open Text's dividend payout ratio (DPR) is currently 60.69%.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. AustralianSuper Pty Ltd acquired a new position in shares of Open Text in the 3rd quarter valued at $8,011,000. The Manufacturers Life Insurance Company raised its holdings in Open Text by 1.1% in the 3rd quarter. The Manufacturers Life Insurance Company now owns 5,642,455 shares of the software maker's stock valued at $187,952,000 after buying an additional 63,620 shares during the period. Natixis Advisors LLC acquired a new position in Open Text in the third quarter valued at about $1,467,000. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp increased its position in shares of Open Text by 126.1% during the third quarter. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp now owns 86,260 shares of the software maker's stock valued at $2,871,000 after acquiring an additional 48,111 shares during the last quarter. Finally, Stifel Financial Corp purchased a new stake in shares of Open Text in the 3rd quarter valued at approximately $2,232,000. 70.37% of the stock is currently owned by hedge funds and other institutional investors.

Open Text Company Profile

Open Text Corporation provides information management software and solutions. The company offers content services, which includes content collaboration and intelligent capture to records management, collaboration, e-signatures, and archiving; and operates experience cloud platform that provides customer experience and web content management, digital asset management, customer analytics, AI and insights, e-discovery, digital fax, omnichannel communications, secure messaging, and voice of customer, as well as customer journey, testing, and segmentation.